Spring transformation in an important system of state subsidies: this is how the rules may change

The amendment package concerning EKD grants has been subject to social consultation. The aim of the draft is to promote high added value, low environmental impact investments, as well as the development of local enterprises through the system. Accordingly, when assessing the grant, projects related to research and development (R&D), investments that increase added value produced by the supplier value chain, the SME sector[1] and internationally competitive domestic companies will now enjoy a specific advantage. When determining the amount of support that can be awarded individually, the value of R&D expenditures, the amount of renewable energy produced, and existing educational collaborations may become criteria, among others.

“The amendment proposal leads to two important directions. On the one hand, submitting an application may require much more thorough preparation and planning than before, and investors must definitely pay special attention to this. On the other hand, projects and investments that also include innovation and research and development will come into even greater focus,”

– emphasized Tamás Szűcs, EY’s partner responsible for taxation and state aid, head of the state aid team.

“Businesses should definitely consider whether they are currently conducting or planning research and development. In many cases, we find that companies do not even think about the fact that they are conducting R&D activities and can thus gain significant benefits and subsidies. During our financial, but even technical, negotiations, it often happens that my colleagues and I identify innovative processes that our clients would not have thought of before,” the expert added.